This project includes construction of an approximately 0.8-mile segment of the Sound to Olympics (STO) Trail along SR 305 from Winslow Way to High School Road. The trail incorporates an existing non-motorized bridge located at Ravine Creek. Work includes clearing and grubbing, excavation and fill, retaining walls, boardwalk section, landscaping, asphalt trail surfacing, signage, and other related work.

This is the second advertisement for bids on this project. The first bid opening was held on August 16, 2016; however, the City Council rejected all bids due to bid irregularities and authorized staff to rebid the project.

Bids were solicited a second time and the bid opening was held on December 20, 2016. The apparent low bidder is Nordland Construction Northwest Inc., in the bid amount of $2,188,979.00.  See attached bid results.

The approved project budget as shown in the CIP is $2,755,000 of which $2,309,000 is grant funding. Remaining project budget after design, permitting, and award of the contract to Nordland Construction Northwest, Inc., is approximately $50,000.

In order to award to the low bidder, allow for reasonable contingencies, and fund consultant support for construction management services as required by the WSDOT project agreement, additional funding authority in the amount of $350,000 is required. Project funding options include:

-          Cancellation of the project:  This option would decline the federal grant for construction of the entire length (Phases 2 and 4: $1,946,250), and require the City to reimburse approximately $363,000 in federal grant already expended to complete the design, if the project is not completed in the next ten years.

-          Complete just the first segment of the trail: This option would complete the trail to the existing bridge (Phase 2) and decline the federal construction grant for Phase 4 ($692,000). In addition, the City would have to reimburse a portion of the federal grant for design, if Phase 4 is not completed within the next ten years.

-          Provide additional City funding of $350,000 to complete the project: 

o   The Council can consider funding out of existing City fund balance. This will decrease the ending funding balance by the amount of additional spending.

o   Transfer funding from other approved non-motorized projects. 

§  $25,000 for connecting pathways and $50,000 for spot projects in both 2017 and 2018. Transfer of this funding for both years of the biennium provides $150,000 toward the funding gap.

§  Cancel Phase 3 of the STO Project (Bridge across SR305). This would make $848,000 in City funding available. In addition, the City would not accept an awarded grant of $2,092,000. The $848,000 could fund the STO Phase 2/4 project, as well as any additional funding required for the upcoming Olympic Drive project (STO Phase 1).

Staff has reviewed the bid results and contractor’s qualifications and recommends that the City Council award this contract to Nordland Construction Northwest, Inc., in the bid amount of $2,188,979.00.